VDMA criticizes EU Deforestation Regulation as excessive bureaucracy
The German Mechanical Engineering Industry Association (VDMA) has strongly criticized the upcoming EU Deforestation Regulation (EUDR), describing it as “bureaucracy at its worst” and calling for a fundamental revision along with a postponement of its entry into force by at least two years.
In a letter sent to the European Commission and the German Federal Minister of Agriculture, VDMA warned of the serious consequences the regulation could have for companies across Europe. The EUDR, which is scheduled to apply to large companies from the end of 2025 and to smaller enterprises from mid-2026, requires full traceability of raw materials such as wood, rubber, and leather back to their original plots of land.
According to VDMA President Bertram Kawlath, the regulation is poorly designed and imposes an excessive administrative burden: “It is poorly crafted, as demonstrated by the extensive and constantly growing number of questions and answers published by the Commission. The high level of administrative effort generated by the regulation, both for companies in Europe and in third countries as well as for public authorities, is bureaucracy at its worst.”
Although the mechanical engineering industry is not a direct producer of the raw materials concerned, it depends on components made from them – such as seals, tires, or conveyor belts – which are also distributed as spare parts. Kawlath underlined: “It makes little sense that, in addition to the distributors of relevant raw materials and products, all downstream European value chain participants must also comply with full EUDR declaration and due diligence obligations.”
In its consultation response, VDMA proposed several adjustments to make the regulation more workable, including limiting due diligence requirements to the first distributor, introducing de minimis thresholds for small quantities, minor deliveries, and negligible raw material content in products, and granting exemptions for test products, operating instructions, and returned goods.
The association stressed that, in its current form, the EUDR risks causing supply chain disruptions, delivery delays, and a severe loss of competitiveness for European companies. Kawlath concluded: “In its current form, the Deforestation Regulation is a bureaucratic monster. To prevent it from jeopardizing European competitiveness, it must not be implemented in this way under any circumstances.”
VDMA is therefore urging the European institutions and the German federal government to work toward a more balanced, economically viable, and less bureaucratic solution.
